{"id":2022,"date":"2026-07-23T13:19:19","date_gmt":"2026-07-23T13:19:19","guid":{"rendered":"https:\/\/iqeq.com\/gb\/insights\/fca-aifm-reforms-put-valuation-governance-under-the-spotlight\/"},"modified":"2026-07-23T13:19:21","modified_gmt":"2026-07-23T13:19:21","slug":"fca-aifm-reforms-put-valuation-governance-under-the-spotlight","status":"publish","type":"post","link":"https:\/\/iqeq.com\/gb\/insights\/fca-aifm-reforms-put-valuation-governance-under-the-spotlight\/","title":{"rendered":"FCA AIFM reforms put valuation governance under the spotlight"},"content":{"rendered":"
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At a glance<\/p>\n

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The Financial Conduct Authority (FCA) is consulting on significant changes to the UK\u2019s alternative investment fund manager (AIFM) regime. Many of the proposals are designed to simplify requirements and support growth across the UK asset management sector, particularly for small and mid-sized managers, through a more proportionate regulatory framework.<\/p>\n

At the same time, the FCA is proposing stronger expectations around valuation governance, particularly for private assets. For AIFMs, robust valuation processes, independent challenge and clear conflict management are likely to gain importance. Final rules are expected in Q1 2027, with implementation anticipated in 2028.<\/p>\n

As firms assess the wider implications of the consultation, scrutiny of valuation processes and oversight arrangements should be high on the agenda.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n

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Why is the FCA focusing on valuations?<\/h2>\n

Private market strategies have experienced significant growth over the last decade, increasing the importance of robust and transparent valuation practices. Unlike listed securities, assets such as private equity, private credit, infrastructure and real estate often rely on models, assumptions and professional judgement, rather than observable market prices.<\/p>\n

With an eye to investor protection, the FCA needs firms to demonstrate that valuations are robust, well governed and unbiased.<\/p>\n

Responsibility for valuation sits firmly with the AIFM. While valuation activities can be delegated, accountability cannot. Under the proposed regime, the FCA is likely to expect AIFMs to demonstrate:<\/p>\n